Track daily trends of the Indian stock market. This blog is for discussion of Trends in the national stock exchange (NSE) and trading stocks. Since the Blog is not by a trader - stock market analysis and investment ideas are unbiased.

Tuesday, December 16, 2008

Conflicting views on the direction our indexes will take in short term has created confusion but the markets are weathering all storms and moving steadily up – a small step at a time – beating bears here – killing them there. But every time it has defied the bears – every time it has taken a step to go up – it has been little less than expected by me. I did not perhaps realise that the bears are strong and cash rich. But my assumption was based on the fact that they have to let the bulls go to some heights before they meaningfully cull them. It may be actually that the bulls too are wary of each step they take. All said and done – I was of the opinion that the markets will go in the range of 32 to 35 hundred on nifty before the serious selling will set in. – Culling of bulls I meant. So we have some time to go before we reach there – one step at a time. I still stand by the figure I gave above. Now only markets have to prove me right – or wrong.

There was nothing really good about the global cues or the markets. Infact we should see the weakness shown by the world markets somewhat magnified in our trading today. Asia was weak – except ofcourse our markets. Europe opened green then steadily slipped in red – at one point diving deep down then recovering close to the flat line but in red. FTSE was 0.07% red, DAX was 0.18% red and CAC closed 0.87% in red. US struggle continued with the fate of the automakers still hanging on a thread and while the comments were there to signal and calm the frayed nerves of the investors – there were no details on timings, amount or the term of the package to the big three daddies of US auto industry. While the General motors and Ford finished the session a few points in positive (0.14%) to be precise, The US indices traded in red. DOW was down 0.75%, Nasdaq down 2.1% and S&P down 1.27%.

The candle formed was white and good. The Bollinger bands have expanded a bit and the Candles are along the upper line of the bollinger bands. 5 EMA line is above the 20 EMA line. The volumes were same as yesterday. MACD positive divergence has increased and the goodness continues. RSI is good and so is TRIX. Now the problem – MACD red and blue lines are in overbought zone and they do not intended remaining there for too long. That is the way so just a time before it drops (taking the markets down with it) Also the red line has already looked down attempting a crossover to the lower side. Another negative day in making today? Let us see.

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About Me

Retired from Army after 22 years of service. Now pursuing my loves - photography, wildlife (birding in particular) and traveling...I have jumped from Canon to Nikon. (Earlier I had Canon 7D mark ii along with 100-400mm mark ii lens)

Disclaimer

I am no good in stocks -- I do this just for the heck of it. I am not employed by anyone who would have vested interest in my recommending or talking good/bad about any particular stock or company.If you find anything worthwhile -- you are free to take it -- or for that matter lump it.